Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Arizona Real Estate Salesperson Exam involving fiduciary disclosure and Arizona Department of Real Estate. Which answer best reduces risk? (Item 59)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Tell the client material information relevant to the representation in a way that fits Arizona exam practice.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits Arizona exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. The Arizona reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Agency and License Law
- Objective: fiduciary disclosure